Real estate remains one of the most popular investment options for NRIs. Whether you’re planning to build your dream home, invest for future returns, or secure a place for your family in India—buying property can be a great decision when done right.
In this guide, we’ll cover:
- Buying Property in India as an NRI
- Legal Rules & Repatriation Guidelines
- Renting vs. Owning – What’s Better for You?
1. Buying Property in India as an NRI
Yes, NRIs can buy property in India—but there are a few things to keep in mind.
What you can buy:
- Residential or commercial property
- Land (non-agricultural plots)
What you cannot buy:
- Agricultural land, plantation land, or farmhouses (unless inherited)
Payment must be made via:
- NRE/NRO/FCNR accounts
- Indian banks using inward remittance (no cash purchases allowed)
Tip: Always verify land titles, builder credibility, and legal clearances before buying.
2. Legal & Repatriation Rules
Owning property in India as an NRI comes with legal obligations:
Key Legal Points:
- Register the property in your name.
- TDS (Tax Deducted at Source) applies when selling property—typically 20%+.
- Income from rent is taxable in India.
Repatriation of Sale Proceeds:
Yes, you can repatriate funds (send money abroad) after selling your property in India, subject to conditions:
- Property must have been bought using foreign funds (NRE/FCNR).
- Max repatriation limit is $1 million per financial year, including all assets.
- Submit Form 15CA/15CB and bank approval (from RBI, if needed).
Tip: Keep proper paperwork—purchase documents, bank statements, tax filings—for smooth repatriation.
3. Renting vs. Owning – What’s Right for NRIs?
This depends on your financial goals and lifestyle.
| Factor | Renting | Owning |
|---|---|---|
| Flexibility | More flexible | Less flexible |
| Investment | No asset growth | Builds long-term wealth |
| Tax on income | None | Rental income taxable |
| Maintenance | No hassle | Owner responsible |
Choose to own if:
- You plan to return or retire in India.
- You want to invest in growing Indian cities like Pune, Bangalore, Hyderabad, etc.
Choose to rent if:
- You’re uncertain about relocation.
- You prefer liquidity over long-term property management.
Final Thoughts
For NRIs, Indian real estate offers both emotional and financial value. But success lies in doing your due diligence, understanding legal and tax rules, and planning your investment smartly.